Buffalo Wild Wings, Inc. Expands Share Repurchase Program by $300 Million
August 16 2016 - 9:45AM
Business Wire
Increases Leverage Target Up to 1.5x
Debt/EBITDA
Buffalo Wild Wings, Inc. (NASDAQ:BWLD), today announced that its
Board of Directors authorized an increase to its share repurchase
program for an additional $300 million of the company's common
stock. The repurchase authorization replaces the previously
approved $200 million share repurchase program, of which
approximately $75 million dollars remains, and brings the company’s
outstanding share repurchase program to $375 million. Purchases may
be completed from time to time in the open market or in privately
negotiated transactions, subject to applicable laws and
regulations. The company intends to fund the program with a
combination of cash and debt.
The company also announced that it is targeting a leverage ratio
of up to 1.5 times debt to EBITDA and that it intends to increase
its line of credit facility to $500 million by the fourth quarter
of 2016.
Sally Smith, president and chief executive officer, said, "We
remain committed to maintaining financial flexibility as we
continue to return significant capital to Buffalo Wild Wings
shareholders. Based on our in-depth review of our capital strategy,
this disciplined approach reflects the company’s solid balance
sheet and free cash flow as well as our confidence in the
successful execution of our long-term growth objectives for our
business."
About the Company
Buffalo Wild Wings, Inc., founded in 1982 and headquartered in
Minneapolis, is a growing owner, operator and franchisor of Buffalo
Wild Wings® restaurants featuring a variety of boldly-flavored,
made-to-order menu items including its namesake Buffalo, New
York-style chicken wings. The Buffalo Wild Wings menu specializes
in 21 mouth-watering signature sauces and seasonings with flavor
sensations ranging from Sweet BBQ™ to Blazin’®. Guests enjoy a
welcoming neighborhood atmosphere that includes an extensive
multi-media system for watching their favorite sporting events.
Buffalo Wild Wings is the recipient of hundreds of "Best Wings" and
"Best Sports Bar" awards from across the country. There are
currently more than 1,190 Buffalo Wild Wings locations around the
world.
To stay up-to-date on all the latest events and offers for
sports fans and wing lovers, like Buffalo Wild Wings on Facebook,
follow @BWWings on Twitter and visit www.BuffaloWildWings.com.
Forward-looking Statements
Statements in this press release constitute forward-looking
statements for purposes of the Safe Harbor provisions under the
Private Securities Litigation Reform Act of 1995. These statements
relate to future purchases of shares and sources of funds for the
same. All statements other than statements of historical fact are
statements that could be deemed forward-looking statements and are
based upon the current beliefs and expectations of our management.
We have attempted to identify forward-looking statements by words
such as, “intends,” “may,” and other comparable terminology. Actual
results may vary materially from those contained in forward-looking
statements based on a number of factors, including, but not limited
to, our ability to achieve and manage our planned expansion, the
ability of our franchisees to open and manage new restaurants,
market acceptance in the new geographic regions we enter
(particularly non-U.S. locations), success of acquired restaurants,
success of investments in new or emerging concepts, unforeseen
obstacles in developing nontraditional sites or non-U.S. locations,
our ability to obtain and maintain licenses and permits necessary
to operate our existing and new restaurants, our franchisees’
adherence to our system standards, the cost of commodities such as
traditional chicken wings and supply chain consistency, the success
of our key initiatives and our advertising and marketing campaigns,
our ability to control restaurant labor and other restaurant
operating costs, the continued service of key management personnel,
our ability to protect our name and logo and other proprietary
information, economic conditions (including changes in consumer
preferences or consumer discretionary spending), the impact of
federal, state or local government regulations relating to our
employees, the sale of food and alcoholic beverages, the effect of
competition in the restaurant industry, our ability to increase our
credit facilities, and other factors disclosed from time to time in
our filings with the U.S. Securities and Exchange Commission,
including the factors described under “Risk Factors” in Part I,
Item 1A of our Annual Report on Form 10-K for the fiscal year ended
December 27, 2015, as updated in subsequent reports filed with the
SEC. Investors should take such risks into account when making
investment decisions. Shareholders and other readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date on which they are made. We
undertake no obligation to update any forward-looking
statements.
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Buffalo Wild Wings, Inc.Investor Relations
Contact:Heather Pribyl, 952-540-2095
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